NEW YORK (AP) — Shares of Dave & Buster’s are rising in their first day as a publicly traded company.
The stock added 93 cents, or 5.8 percent, to $16.93 in Friday morning trading.
The Dallas company raised about $94.1 million from its initial public offering of approximately 5.9 million shares. The offering was priced at $16 apiece, at the low end of the projected range of $16 to $18 per share.
Dave & Buster’s Entertainment Inc. is the parent company of Dave & Buster’s Inc., a chain of restaurant, video and game arcades. The company was taken private in 2006 by Wellspring Capital Partners and HBK Main Street Investors, which sold it four years later to Oak Hill Capital.
Dave & Buster’s is giving underwriters a 30-day option to buy up to an additional 882,352 shares.
The company is using the proceeds from the IPO, targeted to close Thursday, to pay down debt.
The stock is trading on the Nasdaq under the “PLAY” symbol.
Also making its debut is Diplomat Pharmacy Inc., up $3.39, or 26.1 percent, to $16.39. The Flint, Michigan, company raised approximately $173 million from its IPO of about 13.3 million shares. The offering priced at $13 per share, below the projected range of $14 to $16 per share.
Diplomat Pharmacy is selling 10 million shares, while certain selling stockholders are selling about 3.3 million shares. Diplomat Pharmacy won’t receive any proceeds from shares sold by the selling stockholders.
The company and the selling stockholders are each giving the underwriters a 30-day option to buy up to an additional 1 million shares — for a total of 2 million shares — to cover any excess demand.
Diplomat Pharmacy’s stock is trading on the New York Stock Exchange under the “DPLO” ticker symbol.
Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
